PRADEEP GOYAL versus UNION OF INDIA on 18 July 2022

1. By way of this Writ Petition under Article 32 of the Constitutionof India, the petitioner, a Chartered Accountant by profession, by way ofBpresent Public Interest Ligation has prayed for an appropriate writ, orderor direction to the respondents – respective States and the GST Councilto take all necessary steps to implement a system for electronic (digital)generation of a Document Identification Number (DIN) for allcommunications sent by the State Tax Officers to taxpayers and otherconcerned persons.C

1.1 It is also prayed to direct the GST Council to consider andtake a policy decision in respect of implementation of the DIN systemby all the States.

2. It is the case on behalf of the petitioner that by implementing aDsystem for electronic (digital) generation of a DIN, it will usher intransparency and accountability in the indirect tax administration. It issubmitted that as such the same is the Government’s objective. It issubmitted that the same may prevent any abuse by the DepartmentalOfficers of pre-dating communications and ratifying actions byauthorizations subsequently made out in the files.E

2.1 It is the case on behalf of the petitioner that even Hon’ble thePrime Minister of India had earlier asked the Department of Revenue tocome up with specific measures to ensure that the honest taxpayers arenot harassed and served better. It is submitted that in pursuance of theFdirections issued by the Hon’ble Prime Minister, the Central Governmenthad taken a decision as far as back in the year 2019 to implement theDIN system of Central Board of Direct Taxes (CBDT). It is submittedthat as per the press note issued by the Ministry of Finance on and from01.10.2019, every CBDT communication will have to have a DocumentIdentification Number (DIN).G

2.2 It is averred that the Document Identification Number system,which will bring in transparency and accountability in the tax administrationand, as on today, the same has been implemented only by two States, i.e.,the States of Karnataka and Kerala. It is submitted by learned counselappearing for the petitioner that GST Council as per Article 279A of H

the Constitution of India can make recommendations to the States onany matter relating to GST. Therefore, when implementation of the DINsystem is in the larger public interest and the objective to implement theDIN system is to bring in transparency and accountability in the indirecttax administration, it is prayed to direct the respondents – States toimplement the DIN system. It is prayed to direct the Central Government/ CBIC / GST Council to issue directions to the concerned States toimplement the DIN system in respect of all communications sent by theState Tax Officers to assessees, taxpayers and other concerned persons.

3. On the copy of the writ petition being served pursuant to theorder passed by this Court dated 11.07.2022, Shri Balbir Singh, learnedASG has appeared on behalf of Union of India. He has submitted thatUnion of India does not dispute that by implementing a system forelectronic (digital) generation of a DIN, it will bring in transparency andaccountability in the indirect tax administration. He has submitted thateven as desired by Hon’ble the Prime Minister of India, the CentralGovernment had taken a decision to implement the DIN system of CentralBoard of Direct Taxes and on and from 01.10.2019, every CBDTcommunication will have to have a Document Identification Number(DIN). It is submitted that however, so far as the implementation of thesystem for electronic (digital) generation of a DIN for all communicationssent by the State Tax Officers to taxpayers and other concerned personsis concerned, the same is to be done and/or implemented by the concernedStates. It is submitted that it is true that the GST Council in exercise ofpowers under Article 279A of the Constitution of India can makerecommendations to the States and can issue an advisory to all theStates to implement the system for electronic (digital) generation of aDIN for all communications sent by the State Tax Authorities/ Officersto taxpayers and other concerned persons, as has been done andimplemented by the States of Karnataka and Kerala.

4. We have heard Ms. Charu Mathur, learned counsel appearingon behalf of the petitioner and Shri Balbir Singh, learned ASG appearingon behalf of Union of India.

5. By way of this writ petition under Article 32 of the Constitutionof India, the petitioner has prayed for the following reliefs:- “a. Issue a writ of mandamus or any other appropriate writ, orderor direction to the respondents to take all necessary steps to AB

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Aimplement a system for electronic (digital) generation of aDocument Identification Number(DIN) for all communicationssent by the state tax officers to taxpayers and other concernedpersons;

b. Issue a writ of mandamus or any other appropriate writ, orderBor direction to the GST Council to consider and take a policydecision in respect of implementation of DIN system by all thestates;

c. Issue a writ of mandamus or any other appropriate writ, orderor direction to the Central Government/CBIC to introduceCcentralised DIN for the entire country;

d. pass such further order(s) as may be deemed fit and proper infacts and circumstances of the present case, in the interest ofjustice.”

6. It cannot be disputed that implementing the system for electronicD(digital) generation of a Document Identification Number (DIN) for allcommunications sent by the State Tax Officers to taxpayers and otherconcerned persons would be in the larger public interest and enhancegood governance. It will bring in transparency and accountability in theindirect tax administration, which are so vital to efficient governance.Even the Central Government has also taken a decision and as suchEimplemented the DIN system of Central Board of Direct Taxes and onand from 01.10.2019, as every CBDT communication will have to havea Document Identification Number (DIN). But, as on today, only twoStates, namely, the States of Karnataka and Kerala have implementedthe system for electronic (digital) generation of a DIN in the indirect taxFadministration, which is laudable and to be appreciated.

7. In view of the implementation of the GST and as per Article279A of the Constitution of India, the GST Council is empowered tomake recommendations to the States on any matter relating to GST.The GST Council can also issue advisories to the respective States forGimplementation of the DIN system, which shall be in the larger publicinterest and which may bring in transparency and accountability in theindirect tax administration. Therefore, we dispose of the present writpetition by directing the Union of India / GST Council to issue advisory /instructions/recommendations to the respective States regardingimplementation of the system of electronic (digital) generation of a DINH

PRADEEP GOYAL v. UNION OF INDIA

in the indirect tax administration, which is already being implemented bythe States of Karnataka and Kerala. We impress upon the concernedStates to consider to implement the system for electronic (digital)generation of a DIN for all communications sent by the State Tax Officersto taxpayers and other concerned persons so as to bring in transparencyand accountability in the indirect tax administration at the earliest.

With this, the present writ petition stands disposed of.

Registry is directed to send copy of this order to the Chief Secretaryof all the Respondent States in the Country to take note of the presentorder and take further steps in the matter.

Devika Gujral

Petition disposed of.

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